Commercial real estate market improving, despite lack of liquidity

The commercial market is getting better, even if problems remain.

The National Association of Realtors recently unveiled a presentation which explained that the commercial real estate market may continue to show steady improvements for the foreseeable future, which may be encouraging to commercial property managers.

Many items have improved to make the commercial market look better, according to the presentation, which took place at the Economic Issues and Commercial Business Trends Forum at the Realtor Midyear Legislative Meetings & Trade Expo. These include an improvement in consumer spending, as well as overall personal incomes increasing. With continued job growth and savings improving, there is hope that the situation is getting better.

"Commercial real estate is the basis for much of the growth in the American economy, however challenges continue to exist," said Lawrence Yun, chief economist for NAR. "Despite this there are hopeful signs that the market might be slowly recovering due to recent job creation and an increase in consumer spending, among other indicators."

The report added that the difficulty many investors and developers are dealing with is a lack of lending. There has been plenty of credit for large projects, but smaller buyers are struggling. Despite this, the multifamily market is improving at a faster rate than other types of commercial real estate.

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